Feds seize assets of Muslim charities

MattAndrejczak

WASHINGTON (CBS.MW) -- The Bush administration has ordered the freezing of assets of two Muslim charities it suspects of funding terrorist activities, the second such action undertaken this month.

In a brief statement, the Treasury Department's Office of Foreign Assets Control said law enforcement officials raided the offices of Benevolence International Foundation and Global Relief Foundation late Friday, seizing "all financial assets and records."

Benevolence has offices in Newark, N.J., and Palos Hills, Ill. Global Relief is located in Bridgeview, Ill., a Chicago suburb. No additional details were offered.

Global Relief, a non-profit organization that provides food and medicine to Muslims throughout the world, denied it had any links to terrorism.

In a statement, the charity said, "We are in the business of helping innocent civilians and take every precaution to ensure our aid does not go to support or subsidize any nefarious activity."

Treasury Department officials didn't return phone calls to comment on whether the groups were funneling money to the al-Qaida terrorist network or the Taliban government, now ousted from power in Afghanistan.

The FBI, which conducted the raids with U.S. Customs Service agents, had no comment.

No arrests were made.

However, the Immigration and Naturalization Service detained Global Relief Chairman Rabih Haddad, who lives in Ann Arbor, Mich., on a visa violation. He is being held without bond.

On Dec. 4, the Bush administration froze the assets of the Holy Land Foundation for Relief and Development, a Richardson, Tex.-based group that calls itself the largest Muslim charity in America.

It also denied any terrorist links.

The U.S. accused the Islamic charity of funding Hamas, the Palestinian militant group that claimed responsibility for a series of recent suicide bombings in Israel.

Global Relief had total donations of $5.2 million last year and net assets of $1.5 million, according to its annual report.

The charity, founded in 1992, has been active in 16 countries, including Somalia, Iraq, and Chechnya.

Roger Simmons, a lawyer for Global Relief, said the asset freeze affects roughly $590,000 of funds held in two U.S. banks and $100,000 in a Pakistani bank.

Benevolence was established 1993 and currently has 14 offices in 13 countries. It employs over 200 employees worldwide.

On its Web site, the charity said it strives to help and support people throughout the world afflicted by wars, natural disasters, and extreme poverty, regardless of ethnic considerations or nationality.

Benevolence raised $3.7 million last year, which was used for projects in Afghanistan, Bosnia, Chechnya and five other countries.

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